Ripple Launches Platform To Help Governments Issue CBDCs

Ripple launched a platform on Thursday that would help central banks, governments and financial institutions around the world issue their own central bank digital currency.

The Ripple CBDC Platform would offer customers ledger technology and enable issuers to manage CBDCs from start to finish, according to a press release. 

The platform would encompass both wholesale and retail CBDCs — respectively CBDCs used in interbank settlements or CBDCs used by everyday people.

“As a trusted partner to several central banks, we believe this platform will help solve problems for many central banks and governments who are devising plans and developing a technology strategy for CBDC Implementations,” said James Wallis, VP of Central Bank Engagements & CBDCs in a statement. “The innovative capabilities of the platform will help enable instant settlement of both domestic and cross-border payments, reduce risk, and improve the user experience of quickly sending and receiving digital currency on either side of a transaction.”

Around the world 

Eleven countries so far have launched a CBDC and all G7 economies have moved into the development stage of a CBDC, according to the Atlantic Council. 

Now 114 countries, representing over 95 percent of global gross domestic product, are exploring a CBDC, when in May 2020, only 35 countries were considering it, the council said. 

CBDCs have become divisive in the US as some government leaders look to ban it. 

Florida Governor Ron DeSantis signed a bill last week banning CBDCs, and said Florida was the first state to do so. 

“The movement to establish a central bank digital currency is an attempt to surveil & control the finances of Americans. It would violate privacy, limit consumer choice & undermine market competitiveness,” DeSantis tweeted in March. 

The movement to establish a central bank digital currency is an attempt to surveil & control the finances of Americans. It would violate privacy, limit consumer choice & undermine market competitiveness.

CBDC has no place in FL & we are proud to lead the fight against it. pic.twitter.com/7DTOkVAhua

— Ron DeSantis (@GovRonDeSantis) March 21, 2023

Cruz has also suggested banning the US Federal Reserve from issuing a CBDC, and introduced a bill in March 2022 that would ban the Fed from developing a direct-to-consumer CBDC. 

Advocates say CBDCs can provide better financial services to their citizens.